__Objects in rearview mirror *don't matter anymore*...__ 2 historic car companies made big announcements yesterday:

- __[Daimler](https://robinhood.com/stocks/DMLRY)__ owns Mercedes-Benz, which invented the modern engine in the 1880s in Mannheim, Germany. Daimler hasn't transitioned well into the modern era — __now it's laying off 10% of workers__ to [save](https://fortune.com/2019/11/14/daimler-mercedes-job-cuts-electric-autonomous/) cash so it can invest in hybrid and all-electric models.
- __[Ford's](https://robinhood.com/stocks/F)__ just as historic, but doesn't include the 6-disc CD changer and leather interior. It just [confirmed](https://media.ford.com/content/fordmedia/fna/us/en/news/2019/11/14/ford-mustang-mach-e-newest-member-of-mustang-family.html) the name of its hyped Mustang-inspired electric SUV: __"Mustang Mach-E"__ — Ford starts taking reservations Sunday after its Los Angeles unveiling.

__"*I've been doing this for 16 years*"...__ Palo Alto-based Tesla already boasts hundreds of thousands of e-cars on the road — Elon predicted that electric is the future, even if they're only 1.2% of US car sales [today](https://www.cnbc.com/2019/11/13/ford-to-tesla-tout-monster-horsepower-speed-in-high-performance-evs.html). Daimler is forced to go electric because of Europe's environmental regulations, while Ford merged its love of SUVs and Mustangs with cleaner emissions requirements.

_Electric + car = hard_

Charge

__Yes, Tesla's 1st-mover advantage is still there...__ Most car brands have realized that sticking an "e" on their vehicles is the key to the future. That's meant more competition for Tesla, *fast*. But making an electric car that goes 200+ miles on 1 charge is hard. And Tesla's long track record just got recognized by a top critic:

- __[Tesla](https://robinhood.com/stocks/TSLA)__ achieved "[Recommendation](https://www.cnet.com/roadshow/news/tesla-model-3-model-s-recommended-reliability/)" status from Consumer Reports for its Model S and Model 3, about a year after losing the coveted stick-it-up-on-the-fridge accolade.

3 car companies drop major electric car announcements: Tesla, Daimler, Ford

__Canada's finest...__ Earth's biggest cannabis company (illegal cartels not included) just signed a [joint venture](https://www.reuters.com/article/us-canopy-growth-drake/drake-signs-up-for-toronto-marijuana-venture-idUSKBN1XH1T0) with Drake north of the border. But shares of __[Canopy Growth](https://robinhood.com/stocks/cgc)__ plummeted 14% Thursday on word its $57M in quarterly sales were lower than expected. When recreational marijuana was legalized in October 2018, Canopy expected years of pent-up weed demand to drive mega sales. Turns out it [overestimated](https://cheddar.com/media/canopy-growth-sinks-after-reporting-q-losses-and-says-it-will-likely-miss-revenue-guidance?utm_source=All+Subs&utm_campaign=8ea17cd66a-EMAIL_CAMPAIGN_2019_09_25_02_58_COPY_01&utm_medium=email&utm_term=0_4b7ac66387-8ea17cd66a-87300537).

- Canada's provinces are __stuffed with too much unsold cannabis__. 
- Economics tells us that __when there's oversupply, prices fall.__ Last year, Canopy sold marijuana for $8,084 per kilo on average. This year it's down to $5,963 per kilo. 
- That’s a __27% drop__ in the price of Canopy's core product.

__Legalize slowly...__ Canadians are a patient people, so their legalization rolled out in 2 phases. __"Cannabis 1.0"__ was the first phase, including only marijuana leaves and oil. __"Cannabis 2.0"__ is the freshly legal status of more approachable stuff for 1st-timers, like edibles and weed-infused beverages.

- Canopy's CEO [says](https://www.canopygrowth.com/wp-content/uploads/2019/11/Canopy-Growth-Earnings-Release-FINAL-1.pdf) that 2.0 will “__drive the next leg of growth__.”
- So it just submitted __30 products for approval__, including weed chocolate and drinks — and sales of those 2.0 products will start sprouting up in future Canopy earnings reports.

_Remember that time Canopy completely overestimated how much weed it could sell?_

Smoke

__Canopy has an advantage in Cannabis 2.0...__ because its biggest investor is liquor legend __[Constellation Brands](https://robinhood.com/stocks/STZ)__. The Corona-owner piled $4B into Canopy to be partner-in-crime for experimental cannabis-infused alcohol. So while cannabis rival __Aurora__ embraces pot farming and __Tilray__ focuses on medical marijuana, Canopy can invest hard in THC-concocted LaCroix/rosé replacements for Cannabis 2.0.

Canopy Growth falls 14% because Canadians didn't smoke enough legal marijuana

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

We thought you'd smoke more weed, Canada

__Codename: "Cache"...__ It's money. And it's tech. That's what Google stealthily calls its checking account project, which will [launch](https://www.wsj.com/articles/next-in-googles-quest-for-consumer-dominancebanking-11573644601) next year with __[Citibank's](https://robinhood.com/stocks/C)__ help. __[Alphabet's](https://robinhood.com/stocks/GOOG)__ financey move follows __Apple__ (its new credit card is powered by __Goldman Sachs__) and __Facebook__ (it just unveiled Facebook Pay while also working on a global cryptocurrency). But here's Google's plan:

- __Contact-less:__ You'd pay via Google Pay. If you're nostalgic for a physical card, you'll stick with your old school bank.
- __Fees?:__ Unclear. Google didn't mention if it'll charge the fees you hate paying.

__Follow the money...__ Even if Google doesn't charge fees, it could make money off this. It's said it won't *sell* your spending data, but didn't say it won't eyeball your spending habits... then target you with better ads (which Google can charge more for). Half of Americans use debit cards daily, so picture this:

- If you splurged for the fancy premium Ikon ski pass, Google could target you with ads for an Arc'teryx parka (__$$$$__).
- If you stuck with the lower-priced budget Ikon ski pass, Google could target you with ads for that Columbia jacket (__$$__).

_Google meets Citibank_

Explore

__Silicon Valley wants to be your bank, but doesn't want to become a bank...__ Banks are regulated. Hardcore. Alphabet and Apple aren't interested, so they're letting actual banks handle the backend while they look good up front. It's like those Bathtub Fitter [commercials](https://www.ispot.tv/ad/7xOX/bath-fitter-custom-bathtub). Big Tech doesn't get the business benefits of being a bank, but it's more embedded in your daily life through your payments.

Google plans to launch checking accounts, but it doesn't want to be a bank

__(Gasp). Wait. (Gasp)...__ __[Amazon](https://robinhood.com/stocks/amzn)__ doesn't take rejection well. But it just got [dumped](https://www.engadget.com/2019/11/13/nike-ending-retail-pilot-amazon/) by __[Nike](https://robinhood.com/stocks/NKE)__. It's ending the 2-year relationship and moving out because it doesn't want to sell its gear on Amazon.com anymore. 

__We smelled this ghosting before it happened...__ Nike CEO Mark Parker was replaced by eBay's former CEO last month — and he's already flexed his ecommerce muscles by going directly to consumers online instead of via Amazon. That move could lose the love of Prime members and their "*ship 2-day-free or it's not me*" policy. But here are 3 big benefits to owning your own online shopping:

1. __You get customers' email addresses.__ Then you can pepper their inbox's promotions tab daily with reminders that you exist and sell things.
2. __You don't get middlemen.__ Cut out the platforms that may take a cut of every sale of your goods on their sites.
3. __You control the customer experience__. Nike.com is a sleek, ripped website. Amazon.com isn't. Better looks leave customers happier and willing to pay higher prices. 

_The Shopify team after hearing of the Nike/Amazon split-up_

Split

__The real winner here is Shopify...__ If you buy something online, there's a good chance it's powered by Amazon or Shopify. Shopify lets retailers control the front-end website, while it handles the back-end logistics. Nike may or may not become a Shopify customer — but if other big brands ditch Amazon, Shopify wins.

- __[Shopify](https://robinhood.com/stocks/SHOP)__ stock rose 2.9% Wednesday.
- __[Amazon's](https://robinhood.com/stocks/AMZN)__ fell 1.4%.


Nike breaks up with Amazon, deciding everything should happen at Nike.com

Google gets a banking job 

__The 1 billion download club...__ Big number, tiny membership. __TikTok__ just got there faster than any company — [just 2 years](https://www.ft.com/content/dd7234e8-fcb9-11e9-98fd-4d6c20050229) (that makes the 8 years Instagram needed look like a crawl). If you've never TikTok'd (we haven't either) here's what you should know:

- __More raw, less polish:__ Instagram is for the polished life milestone like graduation day pics. TikTok is for sharing raw videos of yourself trying to karaoke Levon the night before graduation.
- __Music-first:__ TikTok is where 2019's megahit "Old Town Road" got huge before radio even knew it.
- __Gen Z is addicted:__ Over 60% of US TikTokers are under 24 — and they spend 52 valuable minutes per day on TikTok, flipping between videos.
- __It's Chinese-owned:__ Which is causing squeamishness from US Senators worried that kids' data could get snatched by the Chinese Communist Party.

__TikTok's also a threat to Zuck...__ User-wise, TikTok is shockingly as big as Facebook's Instagram. The last company that threatened Insta's user growth was __[Snapchat](https://robinhood.com/stocks/snap)__ — so __[Facebook](https://robinhood.com/stocks/FB)__ copied its core feature with "Stories." It's doing it again with TikTok, yesterday [unveiling](https://techcrunch.com/2019/11/12/instagram-reels/) "Reels:" 15-second music-videos users make of themselves, then pop into their story. It starts in Brazil, but is expected to rollout worldwide.

_Instagram wants you doing this on Instagram_

Copy

__American companies knockoff Chinese innovation, too...__ Facebook might as well have called this "DikDok" -- it's a straight-up copy of TikTok's core feature, a defensive move to prevent users from leaving Zuck's apps. It's usually the other way around, but this Chinese-invented social media platform is getting duplicated by America's king of social media. 

Instagram unveils Reels, its TikTok killer

__Best before 11/12/2019...__ Milk legend __[Dean Foods](https://robinhood.com/stocks/df)__ lost its CFO and CEO in the last 6 months. The stock's fallen from $22 in 2016 to just 80 cents. And yesterday it filed for bankruptcy because it can't afford to pay worker pension plans. Depending on a judge's decision, Dean could reemerge from bankruptcy and keep operating. But it's got larger lactose-induced problems.

__Got customers?...__ Barely. Dean's 58 manufacturing facilities and utter-full employees pump out the dairy for Friendly's ice cream, TruMoo chocolate milk, and other local cartons. But non-dairy has [hit](https://www.marketwatch.com/story/health-conscious-people-are-willing-to-pay-nearly-twice-as-much-for-plant-based-milk-2019-07-17) America's biggest milk company hard, dropping Dean's sales by 38% over the last decade.

- Almond, oat, soy, cashew, hemp, coconut, quinoa, rice, pea. *They've all got their own milks now* (smaller environmental impact, potentially healthier).
- Plant-based milk sales __rose 6%__ in the last year while dairy milks __dropped 3%__.
- Now __plant-based milk soaks up 13%__ of the entire milk category.

"_I've got almonds Greg. Can you milk me?"

Half-and-Half

__Don't just blame Millennials...__ (can't condemn us for everything). While every headline covers how oatmilk latte love slurped up Dean Foods' sales, the company also recently lost a major customer: __Walmart__. Last year, Walmart [started](https://www.milkbusiness.com/article/walmart-opens-indiana-milk-plant) processing its own milk instead of relying on Dean's brands. That's a huge loss for Dean that gets less attention than plant-based-palooza.

America's biggest milk company files for bankruptcy (don't just blame Millennials)

__11.11...__ Look at those 4 single numbers. They represent November 11th and casually embody China's extravagant annual spending bonanza holiday. "Singles Day" reminds us of [treat yo' self](https://www.youtube.com/watch?v=AU0h7TlZGO4) day from *Parks and Rec*, except China's biggest ecommerce company, __[Alibaba](https://robinhood.com/stocks/BABA)__, is intimately involved. 

- __$38B:__ That's how much Alibaba's online shopping platform and physical shopping partners [sold](https://www.reuters.com/article/us-singles-day-alibaba-sales/alibabas-singles-day-sales-hit-record-38-billion-growth-slows-idUSKBN1XK0HD) within 24 hours.
- __$5.8B:__ That's how much (little?) Amazon Prime Day brought in by comparison — *Alibaba doubled that in just the 1st hour of Singles Day*.
- *Snacks Sidenote:* Taylor Swift ironically sang "You Need to Calm Down" at Alibaba's Singles Day kickoff. She also performed at Amazon's Prime Day.

__It's a trade-war-free celebration of Chinese economic might...__ Alibaba includes American brands like Nike, Estée Lauder, and even Kim Kardashian's KKW Beauty on the shop-fest. But an Alibaba exec's quote about Singles Day shows its symbolism for China:

- __"We are helping Chinese consumers upgrade their lifestyles..." =__ China is an economic power and its citizens should celebrate by spending on Chinese platforms.
- __"...while introducing new users to our digital economy from across China and around the world" =__ Other countries should recognize that China's tech, ecommerce, and retail are legit. 

_Even couples can shop on Singles Day_

Record-breaking

__Stock prices move when unexpected things happen...__ Monday morning, Alibaba's stock was down despite news of the insane sales numbers (on Tuesday, it was still down from Friday's close). It's because investors *expected* Alibaba to set a record Singles Day.

- __When stocks tend *not to move*:__ When something happens that was broadly expected to happen (like another Alibaba's Singles Day record).
- __When stocks tend to move (sometimes by a lot):__ When something shocking happens at a company. Positive surprise headlines usually lead to stock price increases, and bad surprises tend to lead to stock price drops.

Alibaba's Singles Day sets insane records, but the stock barely moves

Oops, Instagram did it again

__Augmented Reality (AR) vs. Virtual Reality (VR)...__ We all need a refresher. AR is reality, but augmented with stuff (picture a whackable Pikachu in Pokemon Go). VR isn't reality. You only see what the programmers want you to see. Now that that's out of the way, let's talk __[Apple](https://robinhood.com/stocks/AAPL)__, whose 5-year product roadmap got [leaked](https://www.theinformation.com/articles/apple-eyes-2022-release-for-ar-headset-2023-for-glasses) to *The Information*. We just learned its next big bets:

- __"iHelmet":__ That's what we've nicknamed Apple's AR/VR headset, which will cover your eyes completely but use cameras to also show what's actually around you. __Coming in 2022__.
- __"iGlasses":__ (Also our nickname). This is the game-changer — socially-acceptable glasses that can sling whatever digital info you want up in the corner. It's Warby Parker meets RoboCop. __Coming to an Apple store in 2023__. 

__Nobody wants to "miss" augmented reality...__ Back when Dell, Microsoft, and HP crushed life with laptop computers, Google and Apple invested in mobile: iPhone and Android. Microsoft missed mobile phones. Now a gaggle of tech companies — including Facebook, Alphabet, Snap, Microsoft, and Sony — think AR and/or VR could be the next big thing.

_What Apple CEO Tim Cook looks like 5 years from now_

Invent

__The difference between a good idea and a great idea...__ Good businesses/entrepreneurs solve a problem that exists today. Great ones anticipate tomorrow's problems, then fix them now. iPhone is Apple's profit puppy, but it's foreseeing an era when you don't want to use your hands to access its powers. iGlasses could be that future in 5 years. Apple's working on it now.

Apple's post-iPhone future got leaked: iGlasses & iHelmet (our names, not Apple's)

__Georgia is known for dawgs, peaches, and sneakers...__ That last part was thanks to __[Adidas](https://robinhood.com/stocks/ADDYY)__, which opened a highly-automated "Speedfactory" there about 3 years ago. The plan was to produce Boost shoes close to American customers instead of half a world away in Southeast Asia. But Adidas just [announced](https://qz.com/1746152/adidas-is-shutting-down-its-speedfactories-in-germany-and-the-us/) it'll close that Speedfactory and the one in Ansbach, Germany, relocating them to Vietnam and China. 

__"*They took our jobs*" sentiment is common...__ China, Mexico, and other low-wage countries now produce many of the physical goods that America used to. But classic "cost of labor" justification is just one consideration companies make when deciding where to produce:

- __Proximity to customers:__ This is the main reason why Adidas located in Atlanta in the first place. Being closer lets companies produce faster, and ship shorter distances. 
- __Foreign exchange:__ Companies love producing in the same country that they're selling in so that they don't need to worry about crazy currency fluctuations.
- __Where the supply chain is:__ This one drove Adidas' latest decision: over 90% of its products are made in Asia, where it enjoys a friendly cluster of suppliers — aka "__agglomeration__."

_Adidas won't be sending US workers to the German offsite anymore_

Agglomerate

__This was an expensive mistake...__ We love that Adidas tried out *Made In USA* shoes (it followed its comrade __BMW's__ lead — they make their SUVs in South Carolina). But this trial was a failure. The 4-ish-year-old Georgia and German Speedfactories will shut by April, affecting 200 jobs. And this mistake may reveal itself as a billion-dollar cost somewhere in Adidas' next earnings report. 

Adidas is closing its American and German "Speedfactories"

Apple's post-iPhone era: iGlasses

__Your go-to '90s fleece sweatshirt...__ featured "G-A-P" in 86-sized font across the chest. Today, __[Gap](https://robinhood.com/stocks/GPS)__ is a struggling retailer, often stuck slapping "40% off everything" everywhere. And ex-CEO Art Peck just "stepped down" on Thursday (that usually means he was fired). Even the planned [spinoff](https://www.cnn.com/2019/11/08/business/old-navy-spinoff-gap-art-peck/index.html) of its more profitable Old Navy brand is now in question.

__Chief Exit Officers...__  McDonald's, Under Armour, Nike, and WeWork all lost their leaders last month. 2008 previously [set](https://www.cbsnews.com/news/ceo-exits-soared-in-october-on-track-for-record-year-2019/) the record for most CEO departures (blame a financial crisis that hit 8.2 on the Richter scale). This year’s ousted execs were driven out by profit worries, retirement, and (for some) personal misconduct — at [record](https://www.cnbc.com/2019/11/06/ceo-departures-hit-a-new-high-in-october-on-pace-for-a-record-year.html) rates:

- __The worst month:__ 172 CEOs either voluntarily resigned or were escorted out by security with cardboard boxes — that's a record for a single month.
- __The (close to) worst year:__ 2019 is on pace to beat 2008 for most CEO departures.

_No CEO is safe_

Turnover

__Now Hiring: A new breed of CEO...__ In the past, execs had 1 job: make as much profit as possible. *Outsource jobs, pollute the environment, instill a hostile work culture* — all good, as long as you cranked out profits. But society and markets have changed so much that the "Purpose of a Corporation" was actually [redefined](https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans) by the Business Roundtable. Here's the new day-to-day of a modern CEO:

- Be a spokesperson for young and woke employees.
- Define the values, mission, and social promise of the company.
- And (of course) you better make profits. 

Gap's CEO gets terminated — this could become the worst year on record for CEOs

__Tesla's drama. GM's labor strike...__ American car brands get the attention, but __[Toyota's](https://robinhood.com/stocks/TM)__ latest earnings [deserves](https://snacks.robinhood.com/newsletters/2CwnR1lhZixZ6jKBEKNYxH/articles/2AAUhO0fTnsAqAT87JpP9a/) yours. Almost 70% of US car sales now are trucks or SUVs — But unlike its Japanese peers, Toyota anticipated this years ago, prepping factories for Tundra, Tacoma, 4Runner, and Rav4 production. Its sales rose 4.5% last quarter and it's enjoying $2,300 in profit off every car sold (Ford's profit per car is $1,400 and Tesla's is just $268).

__Travis 2.0...__ The __[Uber](https://robinhood.com/stocks/uber)__ co-founder/ex-CEO's new venture raised $400M from Saudi Arabia (it's the Saudis' 1st major US tech investment since journalist Jamal Khashoggi's murder). It's called __CloudKitchen__, and it [leases](https://www.wsj.com/articles/saudis-back-travis-kalanicks-new-startup-11573122604?shareToken=stcc22b2bd5ab94bceafc0fb97f2b4a123) kitchen space for delivery-*only* restaurants so they can prep meals. These "ghost kitchens" are sprouting up to supply DoorDashers, GrubHubers, and (plot twist) Uber Eaters with potentially lower-cost delivery food, since they aren't full-service restaurants.

Highs

Who's up...

__Dating is complicated...__ Take __[Match Group](https://robinhood.com/stocks/mtch)__, which owns Tinder and about 45 other dating apps. The number of Tinder users surged by 437K last quarter to hit 5.6M — and the [amount](https://snacks.robinhood.com/newsletters/4mNHQK226PxngogxV2uVvf/articles/1m0xdqCUlwF3fSyrwA2tzV) of Tinder-faithful opening the app 7 days a week jumped by 30%. That big growth couldn't stop Match shares from dropping 15% after it lowered its forecasts for the next quarter.

__Still sore...__ __[Peloton](https://robinhood.com/stocks/pton)__ reported earnings for the first time ever since its September IPO, and shares dropped 8% because investors [want](https://snacks.robinhood.com/newsletters/4mNHQK226PxngogxV2uVvf/articles/8Gf7o3hs6pbZaRq9yyYe5) to see *profits*, not just *growth*. The number of Pelotonistas more than doubled to 563K atop their $2K at-home spin bikes (dropping $39 monthly for live-streamed spin classes). That growth is ripped. But investors aren't comfortable with Peloton's $50M loss.

Lows

...and who's down

CEO-pocalypse: A record-setting year of exec exits

__When your mouth just wants to relax...__ but you have 10,000 things to do. There's a sparkling water for that. __[Coca-Cola](https://robinhood.com/stocks/ko)__ just announced AHA (actual name), a flavored sparkling water with almost as much caffeine as a soda. It hits shelves in March bursting with flavor combos like citrus+green tea or black cherry+coffee. But Coke's tried (and failed) with seltzer before:

- __Take I (2014):__ Coca-Cola launches "Dasani Sparkling Water." It goes nowhere because the brand isn't fresh and it's too similar to every other seltzer option.
- __Take II (2017):__ Coca-Cola acquires Topo Chico to get in on the pseudo-hipster craft mineral water trend (*is it just us or does Topo Chico not make that easy to discover on its website or bottles*).
- __Take III (2019):__ Coca-Cola shuts down Dasani's version and starts from scratch with AHA — the brand is new and the differentiator is caffeine.

__Coca-Cola drowned in the sparkling water industry...__ 5 years later, it's only earned 2.5% of the US flavored sparkling water market. Here's who really [owns](https://www.wsj.com/articles/coca-cola-takes-on-lacroix-with-caffeinated-seltzer-11573135321) it:
- __Polar__ = 7.7%
- __Pepsi__ (Bubly) = 8.5%
- __Nestlé__ (San Pellegrino, Poland Spring) = 11.3%
- __LaCroix__ = 18%. It's the leader, but owner __National Beverage Corp's__ stock is down 60% in the last year facing all that above competition (it fell another 11% Thursday on this AHA moment).

"_You drink bubbles often?_"

__Sparkling Water became so big, it’s got niches now...__ While soda sales fell, sparkling water sales [surged](https://www.wsj.com/articles/coca-cola-takes-on-lacroix-with-caffeinated-seltzer-11573135321) epically from 100M gallons in 2013 to almost 400M last year. That's created a demand for different types of sparkling water for niche needs: Bud Light Seltzer and Corona Hard Seltzer want to replace your evening cocktail, while Coke's AHA goes after your morning espresso.

Coca-Cola re-enters the fight against LaCroix with a flavored, caffeinated seltzer

__Memorize the Bill of Rights...__ define what "unnecessary roughness" means, and reveal the size of your truck. That's the modern citizenship test for foreign carmakers in the US — and __[Toyota](https://robinhood.com/stocks/TM)__ is the only one passing. __Mazda__, __Nissan__, __Honda__, and __Mitsubishi__ all [struggle](https://www.wsj.com/articles/toyota-rides-out-american-shift-to-trucks-suvs-11573132232?mod=hp_lista_pos1) to sell cars to Americans, while Toyota's total sales jumped 4.5% last quarter to 7.6T yen ($70B) globally. Here's why:

- __Smaller cars:__ They represent __just 28%__ of all vehicle sales in America last quarter. Picture little Civics, Accords, and Corollas (aka Uber driver go-to's).
- __Trucks & SUVs:__ 4x4s, pickups, and 7-seaters are all the rage, making up a shocking 66% of new vehicle sales in America last quarter. This is one of Toyota's money-makers. 

__It's all about destroying *muda*...__ We're not shocked that Toyota's winning in cars, trucks, and SUVs. Its passionate culture is committed to eliminating waste — "[muda](https://blog.toyota.co.uk/muda-muri-mura-toyota-production-system)," as the Japanese call it. It would be *wasteful* to produce tiny coupes and sedans that Americans don't want, so Toyota invested years ago in assembly lines for its hefty Tundra, Tacoma, 4Runner, and Rav 4 truck/SUVs.

_Americana just hanging out in a Japanese truck-bed_

Assimilate

__America created the assembly line. Toyota perfected it...__ Thanks to Toyota's anti-muda obsession, it runs an insanely efficient shop, wringing more profits out of each vehicle sale than other car brands. We crunched some numbers on profit per car sold for last quarter:

- __Tesla__ made $268 per car sold.
- __Ford__ brought in $1,400.
- __Toyota__ snagged a cool $2,300 in cold, hard, profit for each car it sold (and it expects to sell 9M of them this year). 


Toyota stands out from its Japanese pals — SUVs and trucks are the key

The LaCroix Killer. Coca-Cola just created one.

__New job posting: Ads Lead...__ “*Responsible for creating a new ads business that enables eaters to discover new foods.*” TechCrunch reporters [noticed](https://techcrunch.com/2019/11/06/uber-ad-platform/) that up on the Uber Eats career page. It's a signal that instead of taking just a delivery fee off your late-night chimichanga order, __[Uber](https://robinhood.com/stocks/uber)__ is adding a new revenue stream from the prime real estate at the top of its Uber Eats app.

__We're calling it a "Browsing Billboard"...__ As your fingers browse Uber Eats for dinner, your eyes will see a billboard. The app's valuable space highlighting food options can be sold as ads to restaurants that crave better delivery sales. Here's how Uber Eats' Browsing Billboard would go down:

- __You:__ Starved for saucy pizza, but don't want to get up. So you open the Uber Eats app.
- __The list:__ Before, the top 5 NYC pizza joints delivering to you featured Di Fara's, Pasquale Jones, Lil' Frankie's, Dani's, and Emily. *They're at the top of the list because of their ratings.*
- __The (future) list:__ Soon, that top spot might be occupied by __Pizza Hut__ (with the word "sponsored" in small letters underneath). *It's at the top of the list because it paid for it.*
- __Uber:__ Makes money selling ads, just like Google does on Google search.

_"Which one of you wants the Uber ad job?"_

__The Browsing Billboard is the next evolution of platforms...__ Web platforms like Uber play a middleman role, connecting buyers with sellers. Expedia plays that role too — but when you search for vacation options, some of the top results are paid ads. And more platforms could start doing that:

- __Spotify's__ platform for music discovery could start making money by promoting artists that pay for it.
- __Apple's__ podcast store could make $$$ the same way.
- Tweet us your own ideas for potential Browsing Billboards __@[RobinhoodSnacks](https://twitter.com/robinhoodsnacks?lang=en)__.


An Uber Eats job post reveals it's about to add digital billboards to its app

__Feel like the Lannisters in Season 7?...__ __[Kroger](https://robinhood.com/stocks/kr)__ is a seasoned grocery biz vet, founded 136 years ago in Cincinnati by a German immigrant's son. Now it's facing competition from German discount grocers __Aldi__ and __Lidl__, which expanded rapidly to the US. __Amazon__, __Walmart__, and __Target__ all got in on groceries, too. Doing nothing isn't an option anymore for Kroger, so it's changing everything:

- __The project:__ "Restock Kroger" is what they're calling it (great inventory inside joke). We call it "Operation don't-go-out-of-business."
- __The changes:__ Adding __Walgreens__ stores within its stores, delivering with __Instacart__, and buying back $1B of shares (to thank investors for their patience). It also acquired a meal kit company.
- __The rebrand:__ "Fresh for Everyone" is the new slogan — that'll be trumpeted by the "[Kroji](https://www.bizjournals.com/cincinnati/news/2019/11/06/here-s-your-first-look-at-kroger-s-new-branding.html#g/463169/5)," Kroger's (new) emoji-ish, post-racial cartoon mascots.

_Navigating a future "dynamic pricing" situation at Kroger_

Price

__"Dynamic pricing" could be up next for groceries...__ Kroger also recently [partnered](https://news.microsoft.com/2019/01/07/kroger-and-microsoft-partner-to-redefine-customer-experience-introduce-digital-solutions-for-retail-industry/) with __Microsoft__ on a project that includes replacing a shelf's old price labels with digital ones. That got us thinking: *"dynamic pricing" could be coming*. AKA pricing that can change based on supply/demand (picture Uber's surge pricing). Digital price stickers would let Kroger...

- __Raise prices when peanut butter is almost out of stock__ to ensure whoever gets that last jar *really* wants it. 
- __And lower prices when there's too much milk__ to prevent cartons from going bad. 
- These changes could reduce waste, increase revenue, and make Kroger more efficient. And if Kroger's not thinking about it, *Amazon almost definitely is.*


Kroger rebrands itself in every way (and might add "dynamic pricing")

Uber Eats delivers "Browsing Billboard"

__*This is my first time, so cut me some slack*...__ Fresh off its September IPO, __[Peloton](https://robinhood.com/stocks/pton)__ announced its first quarterly earnings report as a publicly traded company Tuesday. The results and calorie count all beat analysts' expectations: 

- Revenue more than doubled to $228M.
- The __number of Peloton monthly subscribers__ (you buy the $2K bike, *then* you drop $39/month to be yelled at via streaming spin classes) more than doubled to 563K.
- Peloton projected it'll __add 100K Pelotonistas this holiday season__. 
- Plus: The average __number of workouts per month__ on Pelotons rose from 8.7 to 11.7 (more fun stats in this pretty [presentation](https://investor.onepeloton.com/static-files/db61e1a5-40e5-4bfd-b929-7a1798ba28a1)). 

__So it's a shocker that the stock dropped 8%...__ Peloton felt like a middle schooler who brought home A's when their parents expected B's — and then got grounded. Its CEO struggled to rationalize Wall Street's punishment for its rippling results: "*The stock going backward is a bit of a head-scratcher, I’ve got to be totally honest with you.*" Well put.

_The Profit Police just took down Peloton_

Unsatisfied

__This is a *claaaassic* "Profits vs. Growth" tradeoff...__ Peloton loses money each quarter, spending more than it brings in. Its $50M loss invited investor disgust, but the CEO pointed out the loss was necessary in order to grow quickly. You're either focused on profits or growth — in the saddle or out of it:

- Peloton __could cancel__ its expensive TV ads, stop adding stores at fancy malls, and layoff salespeople to become profitable.
- But is that the right move at this crucial moment when __Mirror__ and __SoulCycle__ are chasing its head start?


Peloton's 8% drop highlights a classic Growth vs. Profits tradeoff

__1st date humble brag...__ __[Match](https://robinhood.com/stocks/mtch)__ owns the trademark on "Swipe" and "Swipe Right" — a huge advantage for the owner of Tinder and 44 other dating apps. Match shares dropped 15% Tuesday though on word that its projections for the upcoming quarter aren't worth [bringing](https://www.marketwatch.com/story/match-group-adds-437000-tinder-subscribers-but-stock-takes-a-tumble-2019-11-05?mod=mw_latestnews) home to Mom and Dad. But its Tinder numbers are.

__Tinder is a stage 5 clinger...__ Actually, its Tinderella users are. The app enjoyed (another) surge in downloads by 437K last quarter to hit 5.6M total users. The new "Swipe Night" interactive in-app choose-your-adventure show that debuted last month was a hit (especially among Gen Z and women). But 2 specific numbers in the [charming](https://s22.q4cdn.com/279430125/files/doc_financials/2019/q3/MTCH-Q3-2019-Investor-Presentation.pdf) earnings stood out to your Snacks team:

- __5 days:__ On average, users check out Tinder 5 days a week.
- __30%:__ That's the increase in users who now open the app 7 days a week compared to last year.

_Those second Tinder date vibes_

__International is Match's opportunity — *but it requires “product localization”*...__ __Uber__ barged into new countries and didn’t adapt to local culture. Match uses the opposite strategy as it heads abroad — it's all about being culturally sensitive. Take Match's OKCupid app tactics in India:

- __Situation:__ Online dating isn't the go-to option and arranged marriage is still common.
- __Response:__ Match made Indian OKCupid dating profiles include more user info than in other countries so that more conservative daters could get comfortable.
- __Result:__ A surge in app downloads to 1.4M over the last year.

Match plummets 15% even though Tinder is thriving

Match Group goes international (respectfully)

__Protect this house...__ from a federal investigation. While __[Under Armour](https://robinhood.com/stocks/ua)__ was busy wicking sweat, the *WSJ* [discovered](https://www.wsj.com/articles/under-armour-posts-flat-sales-in-latest-quarter-11572871976) that SEC investigators are questioning people at its Baltimore office about its accounting practices. The question is whether UA shifted around numbers to *strategically* make sales appear stronger than they really are.

- __2.5:__ That's how many years the investigation has been going on, according to the report.
- __0:__ That's how much info Under Armour has told the public about this ongoing investigation. If execs don't think it's material to the stock, they don't have to disclose it. So they didn't. 

__Coach always said "Talk is cheap"...__ Except when it reveals fundamental issues about your business. Take these 2 [soundbites](https://www.businessinsider.com/under-armour-executives-defend-accounting-practices-2019-11) from Under Armour's earnings call: 

- *“So now we’re focused on 2020 and beyond.”* 
- *“The next chapter”* was mentioned multiple times.
- If you had a 3rd quarter like Under Armour's, you'd want investors looking to the future too. 

_When federal investigators ask to look at Under Armour's files_

Worn

__Under Armour stock plummeted 18% because its core biz is the real issue...__ While your wardrobe trended athleisure, Under Armour doubled-down on more "*ath*," less "*leisure*." CEO/founder Kevin Plank just gave up his role to become the brand chief, dedicated to make Under Armour even "[louder](https://www.cnbc.com/2019/07/30/under-armour-q2-2019-earnings.html)." Now we're seeing how that injures UA:

- __Its home market:__ Sales in North America fell 4%. That was offset by 5% growth internationally, but sales for the entire company shrank over the past year by 1%.
- __The core product of sports apparel:__ Sneaker sales dropped 12% – and if you can’t do sneakers, can you really take on Nike?

Under Armour plummets after an accounting investigation (sneakers are the real issue)

__Losing $543K per hour...__ Think about that. One time you lost nana's birthday check and you were inconsolable. __[Uber](https://robinhood.com/stocks/UBER)__ just told investors everything about its 3rd quarter, but it's hard to not focus on the $1.2B it [lost](https://www.cnbc.com/2019/11/04/uber-uber-q3-2019-earnings.html). After losing $5B the previous quarter (that was higher because of one-time IPO costs), Uber's on pace to lose $8B this year. *$8 billion.*

__It's Uber vs. Everybody...__ Investors piled into Uber for years with the hope it would become like Amazon — an unstoppable giant — but for transportation. In reality though it has enemies. Everywhere:

- __Competition:__ __[Lyft](https://robinhood.com/stocks/LYFT)__ rose from the ashes of Uber’s scandals. Delivery apps are all over your phone. And self-driving car companies could unleash self-driver not-Uber fleets before Uber. 
- __Politicians:__ California's new [law](https://www.fastcompany.com/90424008/uber-and-pals-unveil-a-last-ditch-effort-to-fight-californias-new-gig-economy-law) could make Uber even more unprofitable by forcing it to pay drivers actual wages and benefits. 
- __Restaurants:__ Yup, spots like __Bareburger__ get 20% of their sales from delivery apps — but they're fed up with paying away 15% of those sales as fees to Uber Eats and its delivery rivals. The CEO calls the apps "[a necessary evil](https://www.reuters.com/article/us-grubhub-uber-restaurants/trouble-cooking-grubhub-uber-eats-get-pushback-from-restaurants-on-fees-idUSKBN1XE171)" that he hopes to be rid of by next year.

_Uber figuring out how to make money before its 2021 graduation_

Losses

__Uber prefers you look at its sales growth instead...__ If you do, you're impressed by rides (revenues up 20%), Eats food delivery (+71%), and Freight (+81%!). Here's the problem: Uber's paying for all that growth. Competition forces it to dish out discounts and promo codes Oprah-style. So it's pledged to change things... in 2 years:

- __2021:__ That's the magical year when Uber CEO Dara Khosrowshahi says it'll become profitable. *Funny — that's also when Lyft said it will stop destroying money and start making it, too*. 

Uber stock sinks 6% because it's on pace to lose $8B this year

Uber loses $543,478 every hour

__Start company. Get acquired by Google 12 years later...__ Not a bad way to go out for __[Fitbit](https://robinhood.com/stocks/FIT)__. It's joining the __[Alphabet](https://robinhood.com/stocks/GOOG)__ family after Friday's announcement that Google will drop $2.1B for it. That's a fraction of the almost $10B it was worth after IPO-ing in 2015, but Google's wizardry will help Fitbit take on __Apple__ — Apple Watch sucked away anyone else's smartwatch sales like a dementor.

__What's in it for Google?...__ Then-Google (the parent company is called Alphabet now) paid $12.5B for __Motorola__ in 2011, $3.2B for __Nest__ in 2014, and $1.1B for part of __HTC__ in 2017. It doesn't have much to show for any of this hardware since then. Here's what Fitbit can contribute:

- __Sneaky ad sales:__ 84% of Alphabet's 3rd quarter revenues came from ads. Fitbit could become another platform for Google to slip in paid suggestions when you ask your wrist "*Hey Google...*"
- __Fancy device sales:__ The tiny wedge of Google's biz that's not related to ads is growing faster, led by Pixel phones and Google Home. 
- __Data. Lots of it.:__ Now Google will know your mid-jog blood pressure. Its press release [promised](https://investor.fitbit.com/press/press-releases/press-release-details/2019/Fitbit-to-Be-Acquired-by-Google/default.aspx) it won't use health/wellness data for better-targeted ads (anti-BO antiperspirant?). We'll see. 

_"It's Fitbit, not footbit"_

Sweat equity

__If you want to buy an entire company, you've got to pay extra...__ When one company acquires another, it typically splurges about [33% more](https://www.bcg.com/publications/2018/synergies-take-center-stage-2018-m-and-a-report.aspx) than the stock price of the company it's buying. Alphabet paid 71% more:

- __Sept. 20th: $4.10.__ That was the price of Fitbit shares before word it was open to selling itself.
- __Nov. 1st: $7.35.__ That's how much Alphabet is paying for each and every Fitbit share that exists — aka it's paying $2.1B total.

That's why you often hear of a company's stock rising when investors believe it could get acquired — they want to ride the stock higher, like some did with Fitbit's. 

Google acquires Fitbit — adding another device, ad platform, and data tracker

__Leave the iPhone in your pocket...__ __[Apple](https://robinhood.com/stocks/aapl)__ is now (almost) a Wearables company. iPhone sales have slipped for a full year, but sales in Apple's AirPods and Apple Watch division [surged](https://snacks.robinhood.com/newsletters/7IJVPlBvy3s6Lbf05gZweN/articles/2oxseRVSUKHDdlbpHsyf4o/) over 50% for the 2nd straight quarter. That biz brings in as much revenue as all of __Starbucks__, so CEO Tim Cook's going extra venti with new $249 noise-canceling AirPod Pros. Plus, Apple TV+ launched Friday, adding starpower to its Services division. 

__It took more than 280 characters...__ CEO Jack Dorsey needed 11 tweets to explain that __[Twitter](https://robinhood.com/stocks/twtr)__ has [banned](https://snacks.robinhood.com/newsletters/2dSff7JReMeiN3irHKbN10/articles/ADu90z4izWCG9cipcG1kr) political ads. It still lets world leaders tweet free of fact-checking, but it won't accept cash from them to boost their reach to millions of Twitter users (Jack says it's too risky to society). __[Facebook](https://robinhood.com/stocks/FB)__ still lets politicians push their messages to undecided potential voters — and it expects just [0.5%](https://techcrunch.com/2019/10/30/zuckerberg-political-ads/) of its total revenue for 2020 to come from political ads,

__Your "promiscuous" chicken curry ordering...__ It's a problem for __[GrubHub](https://robinhood.com/stocks/grub)__. That's how the CEO [described](https://snacks.robinhood.com/newsletters/3o0KQAYYbRpqhqULwfOWaD/articles/7m8VoFteAIgGsRXEzlIssk) your disloyal strategy of ordering dinner on whatever delivery app happens to be the cheapest at the moment. GrubHub is forced to whip up promo codes to entice you away from __Uber__ Eats — those extra marketing costs ate down profits by 96% last quarter. Grubhub stock fell to its lowest point in 2.5 years as delivery apps become a commodity.

__Shoulda learned from Leslie Knope in *Parks and Rec*...__ Don't date co-workers. __[McDonald's](https://robinhood.com/stocks/MCD)__ fired CEO Steve Easterbrook on Sunday for his consensual romantic relationship with an employee that [broke](https://www.cnn.com/2019/11/03/business/mcdonalds-ceo-steve-easterbrook-steps-down/index.html) company policy. Since Easterbrook took over in 2015, McDonald's got into shape menu-wise (breakfast expansion) and tech-wise (order kiosks) — The stock doubled in the Easterbrook era. Now shareholders are mourning/adjusting their outlook on McD's future.